MIRA INFORM REPORT

 

 

Report Date :

11.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Orana Viet nam Co., Ltd

 

 

Registered Office :

Lot 3, Road D4, Area A5, Tan Thoi Hiep Industrial Zone, Hiep Thanh Ward, 12 District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

2002

 

 

Legal Form :

Joint venture - Limited liability company

 

 

Line of Business :

Manufacturing and supplying of fruit based raw materials.

 

 

No. of Employees :

100

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

VIETNAM - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

 

Source : CIA

 


 

 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

ORANA VIET NAM CO., LTD

Vietnamese Name

 

CONG TY LIEN DOANH ORANA VIET NAM

Trade name

 

ORANA VIETNAM LTD

Type of Business

 

Joint venture - Limited liability company

Year Established

 

2002

Investment Certificate No

 

412022000280

Date of Issuance

 

15 Jan 2009

The the latest(03rd)  adjustment

 

20 Jan 2012

Place of Issuance

 

Hochiminh city Export Processing and Industrial Zones Authority

Registered Investment Capital

 

USD 3,360,287

Chartered capital

 

USD 419,162

Investment Duration

 

46 years

Tax code

 

0302675288

Total Employees

 

100

 

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Investment Certificate No: 139/GP-KCN-HCM Changed to: 412022000280

15 Jan 2009

 

 

ADDRESSES

 

Head Office

Address

 

Lot 3, Road D4, Area A5, Tan Thoi Hiep Industrial Zone, Hiep Thanh Ward, 12 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3717 6310 – 73717 6312

Fax

 

(84-8) 3717 6311

Email

 

oranavn@hcm.vnn.vn

 

 

DIRECTORS

 

1. NAME

 

Ms. LENE CHRISTENSEN

Position

 

General Director

Date of Birth

 

27 Mar 1967

ID Number/Passport

 

203463469

ID Issue Date

 

06 Aug 2008

ID Issue Place

 

Denmark

Resident

 

Lindevej 35 Stuen, 5250 Odense SV , Denmark

Current resident

 

River Garden, 170 Nguyen Van Huong Str, Thao Dien Ward , District 2, Ho Chi Minh City, Vietnam

Nationality

 

Danish

Tel/Mobil phone

 

+84(0) 1226769109

Email

 

lch@orana.dk 

 

2. NAME

 

Mr. NIELS OLAF OSTERBERG

Position

 

Chairman

Date of Birth

 

27 May 1954

ID Number/Passport

 

204861905

ID Issue Date

 

15 Sep 2011

ID Issue Place

 

Denmark

Resident

 

Planen 1, DK-5300 Kerteminde , Denmark

Nationality

 

Danish

 

3. NAME

 

Ms. DO THI ANH

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

Manufacturing and supplying fruit based raw materials. It is able to supply various products to the catering sector, hereunder:
• Whipping Cream
• Portion Packed Jam
• Jam in Bulk
• Pasteurised Juice / Breakfast Juice in Bulk

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Fruit

Market

 

The subject imports materials from China, Thailand, Denmark, Singapore...

 

EXPORT:

Types of products

 

Its products

Market

 

Products of the subject have been exported to Philippines, Singapore, Malaysia, Kuwait, Middle East countries…

 

 

BANKERS

 

BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HOCHIMINH CITY BRANCH

 

Address

 

No. 134 Nguyen Cong Tru Street, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3823 0125 /3829 7384

Fax

 

(84-8) 3829 8862

SWIFT Code

 

BIDVVNVX310

 

 

Shareholders

 

1. NAME

 

ORANA A/S

Establishment Decision No:

 

21624306

Date Of Issuance

 

14 Apr 1999

Place Of Issuance

 

Denmark

Address

 

Rynkebyvej 2435350 Rynkeby, Denmark

Tel

 

+ 45 63 62 35 75

Fax

 

+ 45 65 39 15 74

Email

 

orana@orana.dk

Website

 

www.orana.dk

Representative person

 

Mr. NIELS OLAF OSTERBERG

Capital

 

189,461.12 USD

Percentage

 

45.2%

 

2. NAME

 

PHU CONG MINH PRODUCING TRADING SERVICES COMPANY LIMITED (translated)

Vietnamese Name

 

CONG TY TNHH SAN XUAT THUONG MAI DICH VU PHU CONG MINH

Short name

 

P.C.M CO., LTD

Business code

 

0300953412 (former No. 4102011110)

Place of Registration

 

Business registration office - Planning and Investment Department of Ho Chi Minh City

Address

 

No.9 Tran Doan Khanh Str, Dakao Ward, District 1, Ho Chi Minh City, Vietnam

Tel

 

(84-8) 38293838, 39101968, 39101969, 38229364

Fax

 

(84-8) 38242901, 38233729

Email

 

pcm@hcm.vnn.vn 

Representative person

 

Mr. NGUYEN HUU CHI

Capital

 

41,496.93 USD

Percentage

 

9.9%

 

3. NAME

 

THE INDUSTRIALIZATION FUND FOR DEVELOPING COUNTRIES (IFU)

Establishment Decision No:

 

CVR No. 23 59 86 12

Date Of Issuance

 

07 Jun 1967

Place Of Issuance

 

Denmark

Address

 

Fredericiagade 27 1310, Denmark

Tel

 

+45 33 63 75 00

Fax

 

+45 33 63 75 99

Representative person

 

Mr. ANDERS PALUDAN MULLER

Capital

 

188,203.95 USD

Percentage

 

44.9%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

 

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

74,016,000,000

71,774,048,067

46,815,000,000

I. Cash and cash equivalents

10,517,000,000

7,312,925,727

9,091,000,000

1. Cash

10,517,000,000

7,312,925,727

6,091,000,000

2. Cash equivalents

0

0

3,000,000,000

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

32,601,000,000

34,484,771,162

9,911,000,000

1. Receivable from customers

5,594,000,000

3,829,078,139

4,321,000,000

2. Prepayments to suppliers

1,966,000,000

101,565,953

797,000,000

3. Inter-company receivable

13,017,000,000

24,741,436,595

409,000,000

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

12,059,000,000

5,812,690,475

4,384,000,000

6. Provisions for bad debts

-35,000,000

0

0

IV. Inventories

29,214,000,000

27,858,013,807

26,983,000,000

1. Inventories

29,589,000,000

28,091,446,857

27,018,000,000

2. Provisions for devaluation of inventories

-375,000,000

-233,433,050

-35,000,000

V. Other Current Assets

1,684,000,000

2,118,337,371

830,000,000

1. Short-term prepaid expenses

603,000,000

438,548,651

152,000,000

2. VAT to be deducted

715,000,000

1,092,388,020

0

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

366,000,000

587,400,700

678,000,000

B. LONG-TERM ASSETS

31,292,000,000

32,982,080,487

25,740,000,000

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

26,897,000,000

28,849,312,199

22,346,000,000

1. Tangible assets

26,897,000,000

20,511,557,699

22,000,000,000

- Historical costs

41,776,000,000

32,192,676,210

30,693,000,000

- Accumulated depreciation

-14,879,000,000

-11,681,118,511

-8,693,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

56,000,000

0

0

- Accumulated depreciation

-56,000,000

0

0

3. Intangible assets

0

5,556,784

17,000,000

- Initial costs

0

55,567,750

56,000,000

- Accumulated amortization

0

-50,010,966

-39,000,000

4. Construction-in-progress

0

8,332,197,716

329,000,000

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

4,395,000,000

4,132,768,288

3,394,000,000

1. Long-term prepaid expenses

1,818,000,000

2,157,855,952

1,838,000,000

2. Deferred income tax assets

2,577,000,000

1,974,912,336

1,556,000,000

3. Other long-term assets

0

0

0

VI. Goodwill

 

0

 

1. Goodwill

 

0

 

TOTAL ASSETS

105,308,000,000

104,756,128,554

72,555,000,000

 

LIABILITIES

A- LIABILITIES

74,677,000,000

74,836,039,733

45,402,000,000

I. Current liabilities

67,001,000,000

56,489,278,534

39,243,000,000

1. Short-term debts and loans

19,376,000,000

16,319,762,570

11,579,000,000

2. Payable to suppliers

3,560,000,000

5,424,556,726

1,690,000,000

3. Advances from customers

0

5,591,972,615

0

4. Taxes and other obligations to the State Budget

12,370,000,000

0

5,163,000,000

5. Payable to employees

0

0

235,000,000

6. Accrued expenses

30,184,000,000

21,854,109,922

15,064,000,000

7. Inter-company payable

1,047,000,000

6,883,955,223

4,699,000,000

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

464,000,000

414,921,478

813,000,000

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

 

 

 

II. Long-Term Liabilities

7,676,000,000

18,346,761,199

6,159,000,000

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

7,576,000,000

18,180,764,590

5,894,000,000

5. Deferred income tax payable

0

165,996,609

0

6. Provisions for unemployment allowances

100,000,000

0

265,000,000

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

 

 

 

9. Science and technology development fund

 

 

 

B- OWNER’S EQUITY

30,631,000,000

29,920,088,821

27,153,000,000

I. OWNER’S EQUITY

30,631,000,000

29,920,088,821

27,153,000,000

1. Capital

6,453,000,000

4,706,829,118

6,453,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

-4,076,000,000

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

28,254,000,000

25,213,259,703

20,700,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

 

 

 

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

0

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

105,308,000,000

104,756,128,554

72,555,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

127,457,000,000

108,875,231,907

100,775,000,000

2. Deduction item

76,000,000

231,511,780

50,000,000

3. Net revenue

127,381,000,000

108,643,720,127

100,725,000,000

4. Costs of goods sold

100,660,000,000

83,945,278,360

76,001,000,000

5. Gross profit

26,721,000,000

24,698,441,767

24,724,000,000

6. Financial income

2,070,000,000

212,613,027

1,089,000,000

7. Financial expenses

4,283,000,000

2,394,346,785

4,101,000,000

- In which: Loan interest expenses

1,875,000,000

1,295,767,274

 

8. Selling expenses

9,137,000,000

8,243,777,348

7,221,000,000

9. Administrative overheads

12,234,000,000

9,945,246,155

8,519,000,000

10. Net operating profit

3,137,000,000

4,327,684,506

5,972,000,000

11. Other income

304,000,000

80,655,411

916,000,000

12. Other expenses

292,000,000

43,820,387

235,000,000

13. Other profit /(loss)

12,000,000

36,835,024

681,000,000

14. Total accounting profit before tax

3,149,000,000

4,364,519,530

6,653,000,000

15. Current corporate income tax

711,000,000

269,466,363

395,000,000

16. Deferred corporate income tax

-602,000,000

-418,652,336

-79,000,000

17. Interest from subsidiaries/related companies

 

 

 

18. Profit after tax

3,040,000,000

4,513,705,503

6,337,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.10

1.27

1.19

2.04

Quick liquidity ratio

0.67

0.78

0.51

1.33

Inventory circle

3.53

3.06

2.82

6.81

Average receive period

93.42

115.86

35.91

52.60

Utilizing asset performance

1.21

1.04

1.39

1.54

Liability by total assets

70.91

71.44

62.58

44.44

Liability by owner's equity

243.80

250.12

167.21

202.39

Ebit / Total assets (ROA)

4.77

5.40

9.17

19.07

Ebit / Owner's equity (ROE)

16.40

18.92

24.50

64.33

Ebit / Total revenue (NPM)

3.94

5.20

6.60

14.35

Gross profit / Total revenue (GPM)

20.96

22.69

24.53

23.86

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank, (L/C, T/T, D/P)

Sale Methods

 

Wholesaler

Public opinion

 

Normal

 

 

INTERPRETATION ON THE SCORES

 

ORANA VIETNAM CO.,LTD is a joint venture company which was established in 2002 to establish a production plant, and R&D centre in Vietnam. The subject is producing Fruit Topping and fruit based raw materials and semi-manufactures to the beverage industry, dairies. The subject also produces Halal certified Mango Fruit Topping for Ice Cream and Kiwi Fruit Topping.

 

Orana Vietnam’s factory located in Tan Thoi Hiep Industrial Zone in Ho Chi Minh City has favorable environment for the company complying with international standards. An innovative waste water treatment system using sun collector and an evaporator have been installed, stable process of production. Capility of the subject is 50,000 tons/year including marmalade, strawberry jam, raspberry jam, squeeze juice, jam, syrup, surface coating, grinding fruit. The subject export about 70% of finished  product exported, and the rest are consumed indomestic market.

 

The Vietnam partner- PHU CONG MINH is a company with a decade long history of food processing that has the origin from pork, beef and poultry. PCM’s trademark of Le Cochon d’Or is well known within the ranks of international restaurants, five star hotels, airlines catering, bakeries and food processing companies.

 

The strong points of the subject are good fund of knowledge of local market and more than 70 years of experience in the business of fruit and taste of Orana A/S, one of the largest Danish suppliers of fruit based raw materials.

 

The presence of Orana Vietnam has resulted in the development of a wide range of exotic fruit based raw materials such as Durian, Sweet Sop/Sour Sop, Dragon Fruit, Jackfruit, etc. The company has grown up quickly in Vietnam. Its annual revenue is stable.

 

In general, the subject has gained a fairly good reputation in the industry. The financial capacity of the subject are normal. Its business activities are fairly busy. Currently, the subject is operating normally. It has capacity to meet all normal financial commitments.

 

 

INDUSTRY DATA

 

Industry code

GDP growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.